Public paid Prescott's council tax

Deputy Prime Minister John Prescott has apologised after acknowledging that public money had been used to pay council tax on one of his official residences.

A total of £3,830.52 has been paid out of public funds for council tax on his flat at Admiralty House, near Trafalgar Square in central London, since 1997.

He has reimbursed the public purse for the cost of council tax since 1997.

Mr Prescott described the payment as "an inadvertent error...based on a genuine misunderstanding".

The Government pays a discounted amount of council tax on Admiralty House and in 1997, Mr Prescott was granted residence at the 18th century former home of the First Lord of the Admiralty.

But he insisted that he believed he was paying council tax on the residence as well as his constituency home in Hull and a rented flat in London, which he moved out of in 2003.

In response to a parliamentary question from shadow local government secretary Caroline Spelman, Mr Prescott explained: "In 1997, the Government carried on paying council tax as before on the flat and claimed a discount (on a second home/company basis).

"This was not confirmed with me and nor was any advice given to me at the time.

"On reviewing the situation, I am now aware that an inadvertent error has occurred, based on a genuine misunderstanding."

He added that to avoid any doubt he had therefore issued this answer "to correct the record and to fully apologise to the House".

And he had "insisted that future council tax bills should be sent directly and personally to me" confirming to Westminster City Council that Admiralty House is his primary residence.

He said the Commons Fees Office had confirmed that he had acted within the rules.

But Cabinet Secretary Sir Gus O'Donnell is to ensure that, in future, ministers who are allocated official residences are given "clear guidance" on dealing with council tax liabilities.

The Deputy Prime Minister has a second official residence at Dorneywood in Buckinghamshire, but he said that council tax there is covered by an independent trust at no cost to taxpayers.

The Office of the Deputy Prime Minister is in charge of council tax and announced in September that it had postponed a planned revaluation of properties in England.